The altcoin popularity index chart shows that the market has been oscillating in extremely low-temperature zones for nearly 4 months. Many investors are beginning to realize that the difficulty of operating in the altcoin market is continuously increasing. What are the reasons behind this phenomenon?

After analysis, I believe there are four key factors that mainly exist:

First, the flow of funds shows obvious temporal characteristics. Early investment funds are mostly concentrated in Bitcoin, and only when the BTC price rises to a high level do altcoins become active, which significantly compresses the investment time window for altcoins.

Secondly, during the price adjustment phase of Bitcoin, unless there are special hotspots for altcoins, it is difficult to avoid the fate of following the decline.

Third, with the continuous issuance of meme coins, the market tail has extended, and the altcoin hotspots have become more decentralized, causing a serious diversion of funds.

Finally, the rapid rise of the decentralized exchange (DEX), although it has a limited impact on Bitcoin, has significantly diversified the capital pool of the altcoin market.

These factors together make the operation difficulty of the altcoin market increasingly challenging, and investors need to respond more cautiously to this complex situation.